Mondelez in fresh tax evasion probe in India

Mondelez commands a 70% share of the Indian chocolate market with Cadbury

Mondelez International subsidiary Cadbury India is under investigation for alleged evasion of excise duties by authorities in India.

India’s Department of Excise is investigating whether Cadbury unlawfully claimed tax exemptions when it established its factory in Himachal Pradesh.

Mondelez International, which spun-off from Kraft Foods in October, is already under investigation for its tax bills when it acquired Cadbury’s Indian subsidiary in February 2010. See HERE.

Cooperating with authorities

Commenting on the latest investigation, a Cadbury India spokesperson told this site: “A compliant and ethical corporate culture, which includes adhering to laws and regulations in the countries in which we operate, is integral to our success.

“To that end, we are fully cooperating with the authorities on this enquiry. Since the investigation currently is under way, it will be inappropriate on our part to discuss the details at this time.”

Cadbury stands accused of evading as much as 2bn Indian rupees ($36m) in taxes, according to news agency Reuters.